A product whose direct material costs and direct labour costs are ₹200 and ₹100 would consume 3 hours, 4 hours and 5 hours in department A, B and C respectively. Overheads absorption rate is - A: ₹4.5 per hour, B: ₹5 per

CS Executive · Cost and Management Accounting · PYQS · June 2015
A product whose direct material costs and direct labour costs are ₹200 and ₹100 would consume 3 hours, 4 hours and 5 hours in department A, B and C respectively. Overheads absorption rate is - A: ₹4.5 per hour, B: ₹5 per hour and C: ₹10.5 per hour. The total cost of the product is —
(A) ₹486
(B) ₹386
(C) ₹214
(D) ₹500.

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Cost Sheet

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